1 week ago
Bengal sweet trade faces sugar shock before festive season
Sugar has become much more expensive in Bengal.
This is a problem because sweet makers use a lot of sugar.
Milk and cooking-gas prices have also risen.
Sweet shops are worried about the busy festival season.
Some makers may raise the prices of sweets.
Other makers are waiting because they do not know whether sugar prices will keep rising.
The government has allowed more sugar to be imported, but traders have not yet felt the benefit.
At the same time, many young people are eating fewer sweets because they are more health-conscious.
Sugar prices rose from ₹49 to ₹67 per kilogram between July 20 and mid-August.
Manufacturers say sugar makes up 27% to 32% of a sweet’s price.
Rising sugar, milk and LPG costs are squeezing makers ahead of the festive season.
The Centre approved imports of 1 million tonnes of raw sugar, but traders had not seen an impact.
Some sweet shops have raised prices, while others are delaying festive-season orders.
- Who
- Sweet manufacturers and retailers in Bengal, including KC Das, Gupta Brothers, Ganguram and Batai Sweets, are affected; the Centre and the state government were urged to respond.
- What
- Sharp increases in sugar prices are raising production costs and creating uncertainty over sweet prices and festive-season orders.
- Where
- Bengal, including sweet businesses in Kolkata, Ballygunge and Howrah.
- When
- Sugar rose from ₹49 per kilogram on July 20 to ₹67 per kilogram four weeks later; the issue was discussed at a Friday conclave ahead of Raksha Bandhan.
- Why
- Sugar availability and prices have worsened while milk and LPG costs have also increased, putting pressure on an industry facing changing consumer habits.
Sweet manufacturers seek relief and price flexibility
Consumers face higher prices amid health concerns
Whether to raise sweet prices
Sweet manufacturers seek relief and price flexibility
Manufacturers say absorbing higher sugar, milk and LPG costs is becoming impractical, and some have already revised prices.
Consumers face higher prices amid health concerns
Higher prices could further discourage customers, particularly as a more health-conscious population is already reducing sugar consumption.
Festive-season purchasing
Sweet manufacturers seek relief and price flexibility
Some makers want government intervention and clearer market conditions before placing large orders; Gupta Brothers decided to hold its festive-material orders.
Consumers face higher prices amid health concerns
Consumers may face reduced affordability or higher prices during the festival season if input costs continue rising.
Government response
Sweet manufacturers seek relief and price flexibility
Manufacturers are urging the state and central governments to control sugar and other input costs.
Consumers face higher prices amid health concerns
The Centre has already permitted 1 million tonnes of raw-sugar imports and imposed stockholding limits, although traders said the measures had not yet affected prices.
Key facts
- Sugar price increase
- From ₹49 per kilogram on July 20 to ₹67 per kilogram four weeks later.
- Sugar share of sweet prices
- Sugar accounts for approximately 27% to 32% of a mishti’s price.
- Daily sugar use
- Gupta Brothers requires more than 200 kilograms daily; Ganguram requires more than 400 kilograms daily.
- Government import measure
- The Centre allowed sugar mills to import 1 million tonnes of raw sugar.
- Stockholding limit
- Bulk customers consuming more than 10 tonnes monthly were limited to 15 days’ consumption.
- Reported business loss
- Batai Sweets said it incurred losses of more than ₹22 lakh between March and July.
- Festive timing
- Manufacturers were discussing orders ahead of the festive season, with Raksha Bandhan scheduled for the following week.
Quotes
Umesh Gupta
Owner of Gupta Brothers in Ballygunge
“We did not increase the price of our products when the LPG prices went up. Now that milk and sugar prices have gone up, we calculated that between March and July, we have incurred a loss of over ₹22 lakh”
telegraphindia.com
“There is no clarity on whether the prices will continue to surge and for how long. We have decided to hold the orders for materials for the festive season.”
telegraphindia.com
Sources
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